2026 IRA Income and Contribution Limits Increased

As expected, the IRS has updated its IRA income and contribution limits for the 2026 tax year, which includes increasing the IRA cap to $7,500 from $7,000.

Here’s your comprehensive guide on the 2026 IRA and Retirement Plan Contribution Limits: Insights & FAQs.

As you navigate the ever-changing landscape of retirement planning, staying updated on annual IRS adjustments is crucial for optimizing your financial future. This guide aims to provide you with the most current insights into 2026 contribution limits for various retirement accounts, as well as answers to frequently asked questions.

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2026 Annual Contribution Limits Table

Retirement Plan	2026 Contribution Limit
Traditional/Roth/Self-Directed IRA	$7,500 (up $500 from 2025) Catch-up: $1,100 for people 50+. Up $100 from 2025.
401(k) 403(b)	$24,500 (up $1,000 from 2025) Catch-up: – $8,000 for people 50+. Up $500 from 2025. – $11,500 for people 60-63. Remains unchanged.
SIMPLE IRA	$17,000 (up $500 from 2025) Catch-up: – $4,000 for people 50+. Up $500 from 2025. – $5,250 for people 60-63. Remains unchanged.
SEP IRA	$72,000 or 25% of compensation, whichever is less.
457(b)	$24,500 (up $1,000 from 2025) Catch-up: unique to specific cases
HSA	$4,400 for Individuals (up $100 from 2025) $8,750 for Family Plans (up $200 from 2025) (catch-up limit of $1,000 for people 55+ remains unchanged)

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Traditional IRA Income Limits

In 2026, the IRS is increasing several income thresholds that determine whether traditional IRA contributions are fully deductible when you or your spouse is covered by a workplace retirement plan. These phaseouts only apply when at least one spouse participates in an employer-sponsored plan. If neither spouse is covered, no phaseout applies and contributions remain fully deductible.

2026 Traditional IRA Deduction Phaseout Ranges

Single filers covered by a workplace retirement plan
The phaseout range increases to $81,000 to $91,000, up from $79,000 to $89,000 in 2025.
Married filing jointly, contributor covered by a workplace plan
The phaseout range increases to $129,000 to $149,000, up from $126,000 to $146,000 in 2025.
Married filing jointly, contributor not covered but spouse is covered
The phaseout range increases to $242,000 to $252,000, up from $236,000 to $246,000 in 2025.
Married filing separately, covered by a workplace retirement plan
The phaseout range remains $0 to $10,000 because it is not adjusted for cost of living.

Roth IRA, Saver’s Credit, and SIMPLE Income Limits

In 2026, the IRS is updating income limits and contribution thresholds for Roth IRAs, the Saver’s Credit, and SIMPLE retirement plans. These adjustments affect eligibility and the maximum contributions workers can make across several retirement account types.

2026 Roth IRA Income Phaseout Ranges

Single filers and heads of household
Phaseout increases to $153,000 to $168,000, up from $150,000 to $165,000 in 2025.
Married filing jointly
Phaseout increases to $242,000 to $252,000, up from $236,000 to $246,000 in 2025.
Married filing separately
Phaseout remains $0 to $10,000 because it does not receive cost-of-living adjustments.

2026 Saver’s Credit Income Limits

Married filing jointly
Limit increases to $80,500, up from $79,000 in 2025.
Head of household
Limit increases to $60,375, up from $59,250 in 2025.
Single and married filing separately
Limit increases to $40,250, up from $39,500 in 2025.

2026 SIMPLE IRA Contribution Limits

Standard SIMPLE IRA contribution limit
Increases to $17,000, up from $16,500 in 2025.
Higher SIMPLE limit for eligible plans under SECURE 2.0
Increases to $18,100, up from $17,600 in 2025.

2026 SIMPLE IRA Catch-Up Contribution Limits

Standard catch-up for age 50 and older
Increases to $4,000, up from $3,500 in 2025.
Alternative catch-up for certain eligible SIMPLE plans under SECURE 2.0
Remains $3,850.
Enhanced catch-up for ages 60, 61, 62, and 63 under SECURE 2.0
Remains $5,250.

Understanding your annual contribution limits for each type of retirement account will help you choose the one that best meets your financial goals and supports successful retirement planning. If you have any questions about your retirement plan and your annual contribution limits, contact a specialist at Horizon Trust.

Why Are Contribution Limits Important?

Contribution limits restrict how much you can contribute to a retirement account each year. Since retirement accounts come with such alluring tax benefits, the IRS caps how much you can contribute to avoid losing excess money by protecting all of your assets in a retirement account.

For individuals and businesses, understanding the contribution limits of your specific retirement account will help you maximize your retirement planning. For SDIRA owners who are looking to invest in real estate in places as diverse as Lincoln, Salt Lake City, or Austin, knowing your contribution limits will help you determine how much capital you can raise via your SDIRA.

Why Do Contribution Limits Change Each Year?

The IRS calculates annual contributions for self-directed IRAs and all retirement accounts based on rising inflation rates.

This calculation is performed before the end of the previous tax year to give people a proper heads-up to start planning for next year’s contributions.

Based on CPI numbers, you can predict next year’s annual contribution limits based on the running inflation rate.

Why Are Increases Not As Big in 2026?

Fortunately for Americans, inflation cooled down significantly in 2024 when compared to the previous year.

As a result, annual contribution increases pegged to the CPI were much less than the previous year. For example, contribution limits for 401(k)s increased by $500 in 2026, as compared to a $2,000 increase in 2023.

IRAs have not increased at all, though they are expected to increase the following year.

What Are Catch-Up Contributions?

Catch-up contributions are extra incentives provided by the IRS to help individuals who are closer to retirement age reach their retirement goals.

These contributions are available to individuals 50 years or older and allow an additional $1,000 contribution for IRA holders who participate in an employee-sponsored 401(k), 401(b), or 457(b) plan.

Changes to Catch-Up Contributions Under SECURE 2.0

The landmark SECURE 2.0 Act includes provisions that classified all catch-up contributions for individuals with a modified adjusted gross income (MAGI) over $145,000 as a Roth-style contribution. That means that all catch-up contributions for wealthy individuals in a 401(k) or 457(b) are taxed based on contributions but may be withdrawn tax-free.

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Greg Herlean

Greg has personally managed over $1.4 billion in financial transactions via real estate investing and fixed and flipped over 450 homes and 2000 apartment units.

His aptitude for business has helped him to provide management direction, capital restructuring, investment research analysis, business projection analysis, and capital acquisition services.

However, these days he is mainly focused on being a professional influencer and educating investors about the benefits of using self-directed IRAs for tax-free wealth management. He is also a devout family man who enjoys spending his free time with his wife and children.

Greg Herlean’s journey started at 19 years old when he made a 2-year journey to Guayaquil, Ecuador, and volunteered to help less fortunate families. As a result, he learned many foundational lessons about faith, community, and hard work, which have helped him in his business success. Using these lessons, he was able to slowly build his wealth through real estate investing and establish Horizon Trust in 2011.

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